205-CPH-Amendment 58AAMENDMENT No. 58A
TO
AGREEMENT FOR CONTINUING SERVICES
FOR THE PREPARATION AND GENERATION OF
PROCESS SAFETY MANAGEMENT (PSM) MANUAL UPDATES
AND UTILITY PSM AUDIT
BETWEEN
THE CITY OF SANFORD, FLORIDA
AND
CPH ENGINEERS, INC.
This Agreement made on ther~/--day of /' ./¢~Y'-c~'L~'Lc4-~' , 2002 between the CITY OF
SANFORD, FLORIDA (hereinafter called the CITY) and CPH ENGINEERS, INC. (hereinafter called
the ENGINEER), is mutually agreed upon and declared an authorized Amendment to an
Agreement dated December 7, 1983, between the parties, herein setting forth the scope, terms and
conditions of the work herein authorized.
In case of any conflict between this Amendment and the aforementioned Agreement of
December 7, 1983, this Amendment shall govern for the work described herein.
SECTION
PURPOSE OF AMENDMENT
1.1. Introduction
The objective of process safety management of highly hazardous chemicals is to
prevent unwanted releases of hazardous chemicals into locations that could expose
employees and others to serious hazards. An effective process safety management
program requires a systematic approach to evaluating the entire process. Using this
approach the process design, process technology, operational and maintenance
activities and procedures, non-routine activities and procedures, emergency
preparedness plans and procedures, training programs, and other elements that
impact the processes are all considered in the evaluation. The various levels of
defense that have been incorporated into the design and operation of the process
to prevent or mitigate the release of hazardous chemicals will be evaluated to
ascertain their effectiveness. The process safety management standard targets
highly hazardous chemicals that have the potential to cause a catastrophic incident.
This OSHA standard is required by the Clean Air Act Amendments.
EPA's final rule for risk management programs for accidental release prevention of
chemicals (61 FR 31668, June 20, 1996) is designed to assist facilities and
communities in their efforts to reduce the number and severity of serious chemical
accidents. Similar to OSHA's process safety management (PSM) standard (29 CFR
1910.119), this rule is performance based. It sets minimum requirements for
stationary sources to use in developing risk management programs, rather than
prescribing specific methods. It is the responsibility of individual stationary sources
to design systems to address the minimum requirements in a way that prevents
accidental releases of regulated substances.
EPA's Risk Management Rule was promulgated in response to a mandate in the
Clean Air Act (CAA) Amendments of 1990, which added new subsection (r) to
Section 112 of the CAA. The new section in the law is designed to prevent
accidental releases of regulated substances and other extremely hazardous
substances into the air. It is also intended to reduce the consequences of releases
by focusing prevention measures on those chemicals that pose the greatest risk.
In response to the Code of Federal Regulations, 29 CFR 1910.119, "Process Safety
Management of Highly Hazardous Chemicals," and in accordance with the United
States Department of Labor Occupational Safety and Health Administration
guidelines, the ENGINEER perform a UtilityPSMAuditand shall prepare a Process
Safety Management Plan (PSMP) Update in accordance with the above referenced
regulations.
1.2. Purpose of the Amendment
The purpose of this Amendment is to authorize the Engineer to provide engineering
services to perform a Utility PSM Audit and an PSM Update in accordance with the
current Federal Regulations.
The Engineer shall provide all services required to complete each task in
accordance with regulatory requirements in effect on the date of execution of this
Agreement to the extent of the scope of work as defined and set out in this
Amendment. The Engineer shall perform professional services as hereinafter
stated in accordance with good engineering practices.
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SECTION 2
PROFESSIONAL ENGINEERING SERVICES
The ENGINEER has previously developed the City of Sanford's Process Safety
Management (PSM) Plan in accordance with Federal and State regulations. To
meet the OSHA requirements and deadlines associated with Process Safety
Management, the City must perform a PSM Audit and Update the current Process
Safety Management Plan, To meet this schedule, these professional engineering
services need to proceed as soon as possible.
Under this Agreement, the ENGINEER shall provide all professional engineering
services required to perform the work in accordance with the Federal guidelines and
requirements. Through an electrical subconsultant, the ENGINEER will provide the
required electrical/controls/instrumentation engineering services for the project.
2.2. Process Safety Management (PSM) Plan Audit
A. The ENGINEER shall perform a Utility PSM Audit in accordance with 29 CFR
1910.110 (o) of the PSM Standard due to the presence of covered processes
(chlorination and dechlorination facilities with ton-cylinders) at the City's water
and reclaimed water treatment facilities. A trained team will perform the auditing
function which will include a final report identifying the teams' findings and
corrective actions. The objectives of the compliance audit are as follows:
1. To verify that all requirements, procedures and practices of the OSHA PSM
Standard, 29 CFR 1910.110 (o), are being met;
2. To assess the effectiveness of the City's existing PSMP in reducing
accidents associated with the covered processes;
3. To identify potential weaknesses in the system and identify corrective
actions; and
4. Verify that the procedures and practices developed under the OSHA
Standard are adequate.
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B, The internal audit and inspection program shall be modeled after the OSHA
guidelines and shall consist of the following:
1. Review of documents for content and completeness;
2. Field observations of procedures to see if they are followed and if they are
workable;
3. Interviews with operating and maintenance personnel to determine if they
understand the written procedures; and
4. Assurance that operators are following safe work practices.
C. The following documents and information relevant to the PSM Compliance Audit
and Inspection are as follows:
1. Process Safety Management Plan;
2. Standard Operating Procedures (SOP);
3. Process Hazard Analysis (PHA)
4. Training Program
5. Incident Investigation
6. Hot Work Permits
7. Receiving Chlorine/SO2 Shipments Procedure
8. Changing Chlorine/SO2 Ton-Cylinders Procedure
9. Starting/Stopping of Chlorine/SO2 Operations Procedure
10. Emergency Action Plan (EAP)
11. Alarm System Test Procedures
12. Confined Space Entry Procedures
13. Operation and Maintenance Manuals.
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D. The proposed audit guideline's are intended to assist the City of Sanford in
determining whether they meet the OSHA PSM Standard (29 CFR 1910.119).
The audit guidelines are the same type used by OSHA compliance safety and
health officers when they conduct chemical process safety inspections. The
proposed guidelines present a project summary, quality criteria references, and
a verification checklist for each of the PSM elements. Verification of each
program element shall be divided into three sections:
1. Records Review:
Describes documentation of the program as
required by the PSM Standard.
2. On-Site Conditions: Involves observing conditions at the treatment
facility.
3. Interviews:
Involves interviewing the operators, staff,
maintenance personnel, engineering staff,
contractors and contractor employees to determine
whether the implemented program matches the
program outlined by the documentation.
E. Proposed PSM Auditing Activities, consisting of preparatory, "on-site" and "post-
visit" activities, are presented below:
A. Select and schedule the PSM Compliance Audit.
B, Select Compliance Audit Team Members and confirm their availability.
Plan the Audit:
1. Define the scope of the audit;
2. Identify pdodtytopic(s);
3. Modify/annotate protocols;
4. Allocate resources.
Gather backqround information:
Discuss the program;
2. Advance visit(s) to the site(s), if appropriate;
3. Pro-audit questionnaire.
Understand manaqement system desiqn:
1, Interviewing;
2, Worki~
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B. Assess strenqths and weaknesses: 1. Internal risks;
2. Internal controls.
Gather audit evidence on system implementation:
1. Assessment;
2, Verification;
3. Sampling.
Evaluate audit findinqs:
1. Summarizing findings;
2, Wording exceptions and observations.
E. Report audit findings
F. Exit Meeting
A. Prepare a "draft" abbreviated letter report.
Process Safety Mana,qement (PSM) Plan Update,
A. Based on the results of the PSM Audit, the ENGINEER shall prepare updates
to the Process Safety Management (PSM) Plans for the:
1. Sanford North WRF
2, Sanford Main WTP
3. Sanford Auxiliary VVTP.
B. New PSM manuals, including all updates based on the audit, shall be provided
to the CITY.
SECTION 3
SUPPLEMENTARY SERVICES OF THE ENGINEER
3.2.
3.3.
3*4.
3.5.
3.6.
3.7
If authorized by the CITY, the ENGINEER shall furnish or obtain from others,
supplementary services of the following types which will be paid for by the CITY as
an additional cost as outlined in Section 5.
Additional services due to significant changes in the scope of the project or its
design including, but not limited to, changes in size, complexity, character of
construction, or due to time delays in initiating or completion of the work as
described herein.
Except as otherwise provided herein, services or additional costs associated with
revising previously accepted studies, reports, or other documents prepared by the
ENGINEER when such revisions are due to causes beyond the ENGINEER's
control.
Additional services resulting from public protests, administrative hearings, or similar
matters.
Preparing to serve and/or serving as an Expert Witness for the CITY in any
litigation, public hearing, condemnation proceeding, right-of-way or easement
acquisition or negotiation, or other legal / administrative proceeding.
Additional engineering services required by revisions to regulations (after the date
of this Amendment) as applicable to the U.S. EPA, Florida Department of
Environmental Protection (FDEP), or other regulatory agency requirements.
Additional services in connection with the project including services normally
furnished by the City as described in Section 4 herein and services not
otherwise provided for in this Agreement.
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SECTION 4
CITY RESPONSIBILITIES
4.1
In
addition to the specific responsibilities hereinbefore described, the CITY will:
Advise the ENGINEER of his requirements for the project and designate a
person to act as the CITY's representative with respect to the work to be
performed under this Amendment, and such person shall have complete
authority to transmit instructions, receive information, interpret and define the
CITY's policies and decisions pertinent to the work covered by this Amendment.
Obtain and provide data requested that is reasonably available on the project
along with operational and maintenance requirements, standard operating
procedures, equipment manuals, etc.
Guarantee access to and make all provisions for the ENGINEER to enter upon
public and private lands as required for the ENGINEER to perform his work
under this Amendment.
Make facilities accessible for inspection.
Examine all studies, reports, sketches, schedules, and other documents
presented by the ENGINEER and render decisions pertaining thereto within a
reasonable time so as not to delay the work of the ENGINEER.
Assist in obtaining approval of all governmental authorities having jurisdiction
over the project, and such approvals and consents from such other individuals
or bodies as may be necessary for completion of the Project.
Furnish or direct the ENGINEER, in writing, to provide at the CITY's expense,
any subconsultant services not designated in Section 2, if advised by the
ENGINEER and CITY concurs that they are necessary.
Furnish, or direct the ENGINEER, in writing, to provide at the CITY's expense,
necessary additional services as stipulated in Section 3 of this Amendment, or
other services as required.
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Provide such legal, accounting, financial and insurance counseling services as
may be required for the project, and such auditing services as the CITY may
require.
J. Give prompt written notice to the ENGINEER whenever the CITY observes or
otherwise becomes aware of any defect in the Project.
SECTION 5
PAYMENT
5.1
Payment for services and expenses of the Engineer are to be as set forth below.
The Engineer agrees to perform the work outlined in this Agreement for a lump sum
fee of $16,500.
5.2.
The City will make prompt monthly payments in response to Engineer's monthly
statements without retention for all categories of services rendered under this
Agreement.
5,3.
Charges for the services rendered by principals and employees as witnesses in any
litigation, hearing or proceeding will be computed at a rate of $1,200 per day or any
portion thereof (but compensation for time spent in preparing to appear in any such
litigation, hearing or proceeding will be computed in accordance with the payment
method as set forth herein).
5.4.
If this Agreement is terminated during prosecution of the services prior to
completion of the services of Section 2, payments to be made in accordance with
Section 5 on account of that and all prior work under this Amendment shall be due
and payable, and shall constitute total payment for services rendered. In addition,
upon termination, the Engineer shall be paid for any additional services authorized
and rendered under Section 3.
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SECTION 6
GENERAL CONDITIONS
6.1.
Since the Engineer has no control over the cost of labor, materials, or equipment
or over any construction method of determining prices, any opinion of probable
construction cost which may be provided in the services of this Amendment are
made on the basis of his experience and qualifications and represent his best
judgment as a design professional familiar with the construction industry, but the
Engineer cannot and does not guarantee that the construction cost will not vary
from opinions of probable construction cost prepared by him. Similar limitations
apply to construction schedules reviewed or prepared by the Engineer.
6.2.
The City and the Engineer each binds himself and his partners, successors,
executors, administrators and assigns to the other party of this Agreement and to
partners, successors, executors, administrators, and assigns of such other party in
respect to all covenants of this Amendment. Nothing herein shall be construed as
creating any personal liability on the part of any officer or agency of any public body
which may be a party hereto, nor shall it be construed as giving any rights or
benefits hereunder to anyone other than the City and the Engineer.
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IN WITNESS WHEREOF, the parties hereto have made and executed this Amendment
the day and year first above written.
ATTEST & SEAL
DATE
CITY:
City of Sanford, Florida
ATTEST & SEAL
ENGINEER:
CPH Engineers, Inc
Vice-President
DATE
David A. Gierach, P.E.
President
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